The Houston housing market recorded its ninth consecutive month of positive sales and set a pricing record for single-family homes in February despite record-low inventory and a winter storm that left many Houston-area residents without power and water and caused property damage, according to the Houston Association of Realtors’ March 10 report.
Single-family home sales increased 1.2 percent year over year to 6,049, the Houston Association of Realtors reported. Total property sales for the month saw a 1.9 percent year over year increase to 7,464. All-in-all, total dollar volume for the month rose 17.3 percent to $2.4 billion.
Every housing segment priced at or above $250,000 saw a double-digit year over year percentage increase in sales in February: The luxury segment, homes priced at or above $750,000, saw a 64.9 percent increase in sales; Homes priced $500,000-$749,999 saw a 55.3 percent increase; and homes priced $250,000 -$499,999 saw a 16 percent increase.
Comparatively, every housing segment at or below $249,999 saw a double-digit year over year decrease in sales in February: Home priced 150,000-$249,999 saw a 16.8 percent decrease in sales; Homes pried $100,000 -$149,999 saw a 42.8 percent decrease; and homes priced $99,999 and under saw a 40.6 percent decrease.
Both the average and the median sales price for a single-family home in February reached historic highs -- The average price climbed 16.2 percent to $349,963, and the median price rose 12.6 percent to $275,900.
Meanwhile, market supply did not keep pace with demand. Single-family home inventory in February 2021 plunged 27.8 percent year over year to a record-low 1.6-month supply, down from a 3.3 month supply in February 2020. Months of inventory estimates the number of months it would take to sell all the active home listings on the market today based on the pace of sales over the past year. Comparatively, the nation’s overall housing inventory currently stands at a historically low 1.9-months supply, according to the latest National Association of Realtors report. The Houston market’s total active listings fell 37.9 percent year over year..
In February, Houston homes spent an average of 48 days on the market, a 20 day decrease from February 2020.
The 30-year fixed-rate mortgage rose above 3 percent for the first time in seven months last week.According to Freddie Mac, the 30-year fixed-rate average climbed to 3.02 percent.The figure hadn’t risen above 3 percent since July 2020
“The Houston housing market showed resiliency again last month, coming through strong despite the brutal winter storm that caused widespread power outages, property damage and briefly held up transactions and showings,” said HAR Chairman Richard Mirandawith Keller Williams Platinum. “As we head into spring, we urgently need more listings to enter the market place or we risk having extremely limited inventory for consumers that want to buy a home now, especially with the prospect of rising mortgage interest rates.”